The following transactions of ADDISON Company during the last quarter of 2022 and first week of 2023 in relation to its receivables were as follows: - October 1: ADDISON Company factors P500,000 of its receivables to Montgomery Company on a with recourse basis: The agreement includes a factoring fee of 1.5% and a 4% holdback both based on the factored accounts. ADDISON Company transferred substantially all the risks and rewards of ownership and the receivable records are transferred to Montgomery Company on October 9, 2022. The fair value of the recourse obligation was P15,000 - December 1: ADDISON Company discounted an P800,000, 8-month, 9% note receivable dated October 1,2022 . The banik discounted the note at 12%. January 8: Received a statement and a check from Montgomery Company indicating that all receivables factored were totally collected. The total loss arising from the receivable financing activities of ADDISON Company in 2022 is